BAZA3

Banco da Amazônia is a federal public financial institution, organized as a mixed-capital company and authorized by the Central Bank to operate as a commercial bank. Its common shares are traded on B3 under the ticker BAZA3, with the Brazilian Federal Government as the controlling shareholder, holding a majority interest in its capital. The institution’s origins date back to 1942, when it was created by Decree-Law No. 4,451 as Banco de Crédito da Borracha, with an initial focus on financing the rubber production chain. In 1950, through Law No. 1,184, it was renamed Banco de Crédito da Amazônia S.A., expanding its scope to other economic activities. The current name, Banco da Amazônia S.A., was established in 1966 by Law No. 5,122, when the institution clearly assumed the role of financial agent for the Federal Government’s policy to develop the Legal Amazon.

Over its history, Banco da Amazônia has consolidated itself as the main financial agent of the Federal Government in the Northern Region and the Legal Amazon, especially in implementing credit policies to foster economic and social development. The bank is responsible for executing public policies, plans and government programs aimed at developing the Amazon region, with a strong emphasis on sustainable productive activities and reducing socioeconomic inequalities both between and within regions. Its institutional mission, defined as “Develop a Sustainable Amazon with effective credit and solutions,” guides its credit expansion strategy, seeking business on sustainable bases that generate jobs, income, and the strengthening of the regional and national economy.

Banco da Amazônia’s business model is based on financial intermediation, the granting of development and commercial credit, and the provision of typical banking services. The institution may operate with development credit, commercial credit and investment portfolios, in addition to acting in the foreign exchange market. A central pillar of its operations is the management of the Constitutional Financing Fund for the North (FNO), which became its main funding source after Law No. 7,827/1989. The bank operates the FNO exclusively in the Northern Region and also uses, on a shared basis, funds from the Amazon Development Fund (FDA), the Merchant Marine Fund (FMM), BNDES, the Federal Government Budget (OGU) and its own resources. In addition, it manages demand and time deposits, savings accounts and Agribusiness Credit Bills, investing the regulatory required percentage in rural financing and in the Productive Oriented Microcredit Program (PNMPO).

In its product and service offering, Banco da Amazônia structures credit lines aimed at specific segments and sustainability. Its main fronts include sustainable credit, which finances environmental conservation projects and the responsible use of natural resources in areas such as sustainable agriculture, ecotourism, renewable energy and responsible forest management; commercial credit for individuals and legal entities, supporting investments and working capital; and microcredit for micro and small entrepreneurs and local businesses. In 2021, the institution launched the so-called FNO Green Lines, with differentiated cost and term conditions for ventures that adopt practices with lower environmental and climate impact. The bank also supports large-scale projects in renewable energy, basic sanitation, logistics and infrastructure, considered essential for improving living conditions in the region.

Regional focus is a distinctive feature of Banco da Amazônia and is relevant for those analyzing BAZA3 shares. The institution covers the entire Brazilian Legal Amazon, which represents about 60% of the national territory, including the states of Acre, Amapá, Amazonas, Mato Grosso, Pará, Rondônia, Roraima, Tocantins and part of Maranhão. Service points are distributed across ten federative units, covering the North, Northeast, Center-West and Southeast regions, with a branch in the city of São Paulo and a representative office in Brasília. Although it does not generate revenue from abroad, the bank has high capillarity in remote areas, including through itinerant FNO initiatives, which aim to reach municipalities with lower banking presence and smaller productive segments, such as mini and micro-entrepreneurs, individual micro-entrepreneurs and family-based farmers.

From an economic and social impact standpoint, Banco da Amazônia directs its financing toward objectives such as reducing rural exodus, mitigating poverty, strengthening the family-based economy, stimulating micro and small enterprises, and increasing Gross Production Value (VBP) and regional GDP. The institution highlights the contribution of its operations to job creation, higher state tax collection and the reduction of inequalities within and between regions. In 2024, for example, R$ 7.7 billion were allocated to the Green Lines, up 15.3% compared to 2023, reinforcing its focus on sustainable projects in the renewable energy, sustainable agriculture and green infrastructure sectors. The bank also reports significant investments in small businesses, low- and middle-income municipalities and border areas, seeking to strengthen local production chains and promote greater economic security.

Banco da Amazônia’s strategy involves broad institutional coordination. The institution maintains partnerships with federal, state and municipal agencies, universities, foundations, non-governmental organizations linked to sustainable development, research centers, Sebrae, Embrapa, technical assistance institutes and representative entities of business owners and small rural producers. In the international and sustainable finance arena, a highlight is the signing of a contract to raise €80 million with the French Development Agency (AFD), accompanied by the AMABIO technical cooperation program, with an additional €2 million budget in non-reimbursable resources aimed at the bioeconomy and sustainable finance. There is also technical cooperation with the Ministry of the Environment and a memorandum with APEX Brasil to boost exports of Amazon bioeconomy products.

On the environmental, social and governance (ESG) agenda, Banco da Amazônia structures long-term targets and programs. The institution intends to reduce financed emissions by 2030 by supporting renewable energy projects and low-emission agricultural practices such as agroforestry systems and crop-livestock-forestry integration, as well as promoting the restoration of degraded areas and Payment for Environmental Services initiatives. Internally, it aims to train 100% of employees in sustainability topics by 2030 and to strengthen impact monitoring and measurement. On the social front, it mentions investments in small businesses, programs focused on female entrepreneurship, financial inclusion initiatives, support for scientific research on circular economy, bioeconomy and technological innovation, as well as donations to entities that serve children, adolescents and the elderly in the Legal Amazon. These elements compose a picture in which the bank positions itself as a financial agent oriented toward the sustainable development of the region, within a federal regulatory and public policy framework.

For investors tracking BAZA3 shares on B3, Banco da Amazônia therefore presents itself as a regional development bank with strong ties to Federal Government policies, a geographic focus concentrated in the Legal Amazon, and a credit portfolio emphasizing productive development, sustainability and social inclusion. The combination of its nature as a public financial institution, the management of constitutional funds such as the FNO, and its activities in strategic sectors such as sustainable agriculture, infrastructure and the bioeconomy defines the issuer’s economic and operational profile in the Brazilian capital market.